Cryptocurrency Market Highlights (January - June 2020)
Many cryptocurrency ventures have gone through a similar experience in the first half of 2020, with many seeing accelerated development producing an annual peak during February and falling back down during the bloodbath in March. Recoveries began shortly after the collapse and most of the coins saw gradual gains, some recovering more rapidly than others. Just a few projects remained in the negative zone, but far fewer projects have succeeded in hitting new all-time highs.
Written by: Sumayah Mohammed , Edited by: Mir Rasel
RESEARCH AUTHOR
Published on
August 16, 2020

January

 January was one of the best performing months in a half year for the broader crypto space, which came after a slow 4Q19 torture. The BTCUSD index of OKEx rebounded 29.85 % in January after a 5 % fall in December, which came after a 10 % decline in the final quarter.

Macro uncertainties have continued to weigh on stocks and commodities; increasing demand for safe havens may continue to support the prices of bitcoin and the broader crypto-market.

Following the price rise in BTC, the market share of Bitcoin has marginally shrunk from 68.21% at the beginning of the month to 66.02 per cent at the end of the month. Conversely, over the period , the total ex-bitcoin market cap has risen from USD 60.41Bto USD 89.2B.

Looking forward, the coronavirus outbreak situation could remain the dominant factor for conventional as well as crypto-assets. The need for safe haven alongside the reward halving bullish expectations will continue to show strong correlations with bitcoin prices, at least in the short / medium term. At the same time, crypto-watchers would like to keep a close eye on the numbers of the Bitcoin / altcoin market domination that could provide an indicator of the capital flow within the crypto-space.


 February 

   The market persisted with the rally in February, after a very good start of the year. It added another 33.8% in the first half of the month, but then the correction eventually took effect. The sector gained 109.8 % from the local low reached on 17 December 2019, which was a significant improvement for such a short time span. Consequently, in the second half of February the market lost 25.9 % and the month ended with a nearly flat result of -0.8 %. It's important to note that market corrections are safe and essential to sPicturelong-term business growth.

The altcoins [Picture1]  have been moving in line with their main feature: they are more volatile than Bitcoin. As a result, they outperformed it strongly in the first half of the month and fell down in the second half. Many altcoins have managed to generate a positive result per month. The top three performers of the top 25 altcoins by market cap were Tezos (66%), Chainlink (46%), and Ethereum (22%). In line with market development, Bitcoin dominance decreased to 60.9% in the first half of the month and ended at 63.9%.


Picture1: Top 25 Cryptocurrency Assets by Market Cap Performance, February-2020

March 

   The crypto market rebounded slightly in the first week of March with a rise of 7.4 % following a fall in the second half of February. As financial markets began to crash in the following days, however, the crypto industry crashed outright. In the wake of the sell-off, the crypto market quickly rebounded, rising 45 per cent in less than two hours.

Following two days of volatility "off the charts," rates started to stabilize and the market proceeded with steady recovery. March 2020 will be among the most volatile months in the short history of cryptography, as well as one of the worst with a return of -32.7%. The crypto market as shown in picture 2 rebounded.


Picture2: Digital Assets 25 Index

The altcoins tended to show greater volatility than Bitcoin. The “ best ” performers of the top 25 altcoins by market cap were Dogecoin (-19%), Bitcoin SV (-22%), and Dash (-24%). Many altcoins have lost between 30 and 50%, while Bitcoin has lost 25%. Bitcoin dominance however only increased marginally and ended the month at 65.0 %. [Picture3]


Picture3: Top 25 Cryptocurrency Assets by Market Cap Performance, March-2020


April

The coronavirus pandemic seems to have little effect on the crypto industrie. The market was rapidly recovering after the first shock and a big price collapse in mid-March. Even after slumping below $4,500, Bitcoin rose to $7,000, other cryptocurrencies showed even more promising results – but there were still big losers. Let's dig at April's most unpredictable Picture cryptocurrencies so far.

The top gainers:

1- Okschain (OKS) [Picture4]

 Gains from 1-15 April: 930%

Market cap: $29M

Okschain positions itself as a “new-generation financial service.”


Picture4: Okschain (OKS)

2- CyberVein (CVT) [Picture5]

Gains from 1-16 April: 220%

Market cap: $30m

CyberVein is planning to build a network of decentralized databases. That will allow it to solve one of the key issues of the industry: the storage of the offchain data used by distributed ledgers is still centralized. Instead of a traditional blockchain, the project uses the DAG (Directed Acyclic Graph) technology.

Picture5: CyberVein (CVT)

 At the peak on 8 April, the daily trading volume exceeded $4m, and the price shot up to $0.047. Since then, the coin lost circa 40% of its value, but it remains one of the best performers of April so far. 

3- Binance Coin (BNB)

Gains from 1-16 April: 25%

Market cap: $2.4b

Of the top 10 coins by market cap, Binance Coin was the clear winner in the first two weeks of April. Its gains in the past 30 days have been even more impressive: +66% since 16 March.


The biggest losers among the most volatile cryptocurrencies:

1) Castweet (CTT) 

Losses from 1-16 April: 46%

Market cap: $24m

2) PRIZM(PZM) 

Losses from 1-16 April: 38%

Market cap: $49m

3) GAPS Chain(GAP) 

Losses from 1-16 April: 32%

Market cap: $35m


May

The top cryptocurrencies to invest in May 2020:

Bitcoin (BTC):

Bitcoin continues to be one of the best cryptocurrencies to invest in.

BTC rallied into the halving event as investor sentiment improved and miners accumulated bitcoin, limiting the supply. It has given up some of the gains during the last few days and short-term volatility is widely expected. 

Trade Bitcoin to US Dollar - BTC/USD CFD

Sell = $11549.69

Buy = $11584.60

The introduction of futures and options for bitcoin has allowed advanced price discovery and created an opportunity for institutional investors to participate in the market

Ethereum (ETH)

Ethereum is the second-largest cryptocurrency by market capitalisation. 

In the short term, the Ethereum network is set to transition from Proof of Work (PoW) to Proof of Stake (PoS), creating Ethereum 2.0. A PoS network effectively eliminates the energy-intensive mining process and is more cost-efficient.

EOS  [ Picture6]

EOS is another cryptocurrency created to support smart contracts.

Picture6: EOS

The bull case for EOSests on the growth of smart contracts and its ability to take market share from Ethereum by offering a more scalable solution. EOS is also one of the better-funded initiatives in the cryptocurrency space as it raised an estimated $4bn through its initial coin offering.

Stellar (XLM)

Stellar has been around since 2014 and was originally designed based on the Ripple network. In fact, Stellar was a fork of Ripple’s XRP and developed its own code after the launch. It is an open-source, decentralised protocol that supports cheap international currency transactions.  [Picture7]

Picture7: Stellar (XLM)

This separates Stellar from Ripple, which has a degree of centralisation and is not really open source. The distributed exchange which facilitates cross-border transactions between currency pairs at the best available exchange rate is one of the main features of the Stellar network.

Ultimately, 1.7 billion people do not have bank accounts and many more are underbanked, with little access to basic financial services. Stellar will support on-scale remittances and micropayments, making it one of the best crypto-graphs to invest in 2020 and beyond.


June

Most crypto traded in June: the proof-of-take coins are gaining momentum. 

Hong Kong's political instability has powered the scale of adoption and trading in Tether (USDT), a stablecoin pegged in the USD. Tether's market capitalization has risen by nearly 50%, or $3bn, since the end of March. 

Trading in proof-of-take coins has also increased, as Ethereum approaches its own PoS upgrade.

Ethereum (ETH) 

Ethereum is up 35 per cent in the last three months and, so far, has been one of the most traded cryptocurrencies in June. Its planned upgrade to the PoS protocol later this year is behind the recent spike in excitement. The transition is scheduled to proceed in three phases. Phase 0 will introduce a new Ethereum chain, called the Beacon chain, which will run in parallel with the main Ethereum blockchain. During this phase, a new token, ETH 2.0, will be created. 

Cardano ADA 

Cardano is up almost 140 per cent over the last three months as it, like Ethereum, gets ready for an upgrade to PoS. 

Quantum

Quantum, a Singapore-based open-source platform, has also seen increased interest recently. It combines some elements of the bitcoin protocol and, at the same time, supports Ethereum’s smart contract functionality.

 In conclusion, The Top Ten Cryptocurrency Market in the first half of 2020 are:

Picture8: Top 10 Cryptocurrency Market in the first half of 2020


References

Okex.com. 2020. Global Crypto Markets Review: January 2020.  <https://www.okex.com/academy/en/global-markets-review-january-2020> [Accessed 13 August 2020].

FAS Fintech Advisory Services. 2020. Cryptocurrency Market Report - February 2020. [online] Available at: <https://www.fintech-advisory.com/news/2020/3/10/state-of-the-cryptocurrency-market-report-february-2020

Zupanc, G. and Zupanc, G., 2020. Monthly Crypto Commentary – March 2020 - Solidum Capital. [online] Solidum Capital. Available at: <https://solidum.capital/blog/monthly-crypto-commentary-march-2020/>

Capital.com. 2020. [online] Available at: <https://capital.com/amp/most-volatile-cryptocurrencies-of-april-2020>

Capital.com. 2020. [online] Available at: <https://capital.com/amp/best-cryptocurrencies-to-invest-in-may-2020>

 Trading-education.com. 2020. What Top 10 Cryptocurrencies Will Explode In 2020? | Trading Education. [online] Available at: <https://trading-education.com/what-top-10-cryptocurrencies-will-explode-in-2020> [Accessed 13 August 2020].


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